Sula Vineyards Ltd Stock Falls to 52-Week Low of Rs.201.6

Stock Performance and Market Context

On 9 Jan 2026, Sula Vineyards Ltd’s share price reached an intraday low of Rs.201.6, representing a 2.14% drop on the day and a 1.48% decline compared to the previous close. This marks the lowest price level the stock has seen in the past year and also its all-time low. The stock has been on a consistent downtrend, falling for six consecutive trading sessions and delivering a cumulative negative return of 7.09% during this period.

The stock’s performance today notably underperformed its sector, lagging by 1.11%. It is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a broad-based weakness in price momentum.

In contrast, the broader market has shown relative resilience. The Sensex opened lower at 84,022.09, down 0.19%, and was trading marginally down by 0.03% at 84,155.76 during the same session. The Sensex remains close to its 52-week high of 86,159.02, just 2.38% shy of that peak. Mid-cap stocks have been leading market gains, with the BSE Mid Cap index rising by 0.06% on the day.

Long-Term Price and Return Analysis

Over the last twelve months, Sula Vineyards Ltd has delivered a negative return of 49.27%, a stark contrast to the Sensex’s positive 8.44% gain over the same period. The stock’s 52-week high was Rs.417.95, underscoring the magnitude of the decline from its peak to the current low.

This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the past three years, one year, and three months, reflecting persistent challenges in maintaining shareholder value.

Financial Performance and Profitability Trends

The company’s financial results have reflected a downward trajectory in profitability. Operating profit has declined at an annualised rate of 10.18% over the past five years, indicating subdued growth in core earnings. The latest quarterly results for September 2025 revealed a 53.68% fall in profit before tax (PBT), with the quarterly PBT at Rs.7.44 crore representing a 56.1% decrease compared to the average of the previous four quarters.

Similarly, the profit after tax (PAT) for the quarter stood at Rs.6.02 crore, down 58.1% relative to the prior four-quarter average. Operating cash flow for the year was recorded at Rs.64.03 crore, the lowest level in recent periods, signalling constrained cash generation capacity.

Valuation and Capital Efficiency

Despite the subdued earnings performance, Sula Vineyards Ltd maintains a return on capital employed (ROCE) of 9.4%, which is considered very attractive within its sector. The company’s enterprise value to capital employed ratio stands at 2.2, suggesting a valuation discount relative to its peers’ historical averages. This valuation gap reflects market caution amid the company’s recent financial results and price performance.

Profitability has also contracted significantly over the past year, with profits falling by 42.7%, further contributing to the stock’s negative returns.

Shareholding and Market Sentiment

Institutional investors hold a substantial stake in Sula Vineyards Ltd, accounting for 22.06% of the share capital. These investors typically possess greater analytical resources and a longer-term perspective on company fundamentals, which may influence trading patterns and price discovery.

Summary of Key Metrics

Sula Vineyards Ltd’s Mojo Score currently stands at 34.0, with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 6 Jan 2026. The company’s market capitalisation grade is rated at 3, reflecting its mid-cap status within the beverages sector.

The stock’s recent price action and financial results highlight a period of subdued performance, with the share price now trading near historic lows. The broader market environment remains mixed, with the Sensex showing modest gains and mid-cap stocks leading, while Sula Vineyards Ltd continues to face headwinds in both price and profitability metrics.

Conclusion

The fall of Sula Vineyards Ltd to its 52-week low of Rs.201.6 underscores the challenges the company has faced over the past year, including declining profits and subdued growth rates. While the stock’s valuation metrics suggest some discount relative to peers, the sustained negative returns and recent financial results have contributed to the current price level. The stock remains below all major moving averages, reflecting ongoing price weakness amid a market that has otherwise shown resilience.

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